King Foods, which had an aberdeen base for its operations, has ceased trading and entered administration, leaving more than 40 staff without work. The company, trading as Foodstore Ltd and founded in 1994, supplied frozen foods and fresh fish products to hotels and retail catering outlets across the north east of Scotland and to outlets in Stirling and Edinburgh.
What Is Happening Now?
Administrators Interpath have confirmed that the company’s 41 members of staff have been made redundant following the directors’ decision to cease trading in mid-February. With no prospect of trade resuming, Interpath will commence a formal process to market the business and assets. That list of assets includes a fitted cold storage facility in Aberdeen, a vehicle fleet and other properties. Geoff Jacobs, managing director at Interpath, has outlined the intention to offer those elements for sale as the immediate next step.
Why Aberdeen Business Folded
Foodstore Ltd, trading as King Foods, experienced adverse trading for a number of years. The administrators have highlighted increased competition and cost price inflation as sustained pressures on the business. Those conditions were exacerbated by the difficulties faced across the hospitality and catering sector, a market to which the company supplied goods. Faced with those combined headwinds, the directors concluded they could not continue trading and moved to appoint administrators.
What Comes Next?
The immediate practical phase is asset marketing and disposal under the administrators’ control; the outcome of that process will determine whether any parts of the business, the storage facility, vehicles or other properties find new operators or owners. Staff redundancies have already taken effect in the short term, and there is no current prospect of trade restarting. Observers should expect a period in which interested bidders evaluate the available assets and in which the local supply footprint that King Foods provided will remain disrupted until any transactions complete. The situation is subject to uncertainty, and the administrators’ stated next steps—marketing the business and assets—will be the primary signal to monitor in aberdeen
